If a Rich Country Grows at a Faster Rate Than

question 407

Multiple Choice

If a rich country grows at a faster rate than a poor one, then

• A) the difference in their living standards will not change over time.
• B) the gap in their standard of living will widen over time.
• C) whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.
• D) the gap in their standard of living will close over time.

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